Injured workers’ insurance fund
Request for Information on Investment Management Services
A: CONTACT INFORMATION
Completed by: ______Title: ______
Telephone: ______Fax: ______Email: ______
Date Completed: ______
Other contact: ______Title: ______
Telephone: ______Fax: ______Email: ______
Firm Name: ______
Main Address: ______Suite ___ City:
State:______Zip:
Main Telephone: ______Main Fax: ______Email: ______
Firm Website: ______
B: ORGANIZATION
Firm History: (one paragraph)
______
______
______
______
Year Founded:
Type of Firm: ______
Ownership structure, please describe in detail including any outside ownership and relationship, if any, to the firm.
______
Percentage Active Employee Owned: %
African American: % Native American: %
Asian American: % Women: %
Hispanic American: % Other: %
Other business relationships (i.e. Joint ventures, broker-dealers, WRAP, mutual funds, hedge funds and/or any subadvisory relationships). Please list and include detail regarding any financial services businesses, outside of the firm, in which the investment staff or owners may be involved, if applicable.
Locations of other offices? ______
If so, where are investment decisions made? ______
Organizational changes planned for the next 12 months?
______
Current capacity constraint (in terms of assets) – please discuss for each product/style and overall firm assets. ______
Growth objectives (long-term growth of assets) either in terms of the dollars managed or the number of accounts? ______
Objectives are achieved (include additional staffing requirements) by:
______
Marketing/client service function – please include a description of this function [e.g., in-house sales and marketing staff, 3rd party marketing agent (list, if applicable), word of mouth]______
______
Written business plan in place? If so, describe whether the execution of this plan is in line with your expectations. ______
Administrative management – who is directly responsible (or takes the most active role)?
______
Succession / contingency plan for a loss of key decision-makers (please describe):
______
Systems used for:
Investment Research ______
Portfolio Accounting
Trading ______
Other
C: Assets under management
Total Assets Under Management: As of Date:______
Assets under management threshold required to break even? ______
Average account size:
Largest account: $ ______
Product Type (please provide a breakdown):
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Product Name Product Style* Product AUM Inception Date
______
* e.g.: Domestic Fixed Income Core
Client Type – provide a breakdown by dollar amount and number of accounts:
# of accounts
Institutional $ ______
Individual/High Net Worth ______
Mutual Fund ______
Sub Advisory Relationships ______
Hedge Fund ______
Other (Explain client type) ______
Total $ ______
Three largest institutional accounts (list name, amount and strategy). If you cannot list the name due to a confidentiality agreement, please list the client classification (ie – public pensions plan, corporate pension plan, foundation, etc.)
Name Amount ($) Strategy
Client Turnover: Assets/accounts gained/(lost) for current year and past 5 years
(also include Assets/accounts under management and number of employees at each yearend)
Year / AUM @Yearend
$(mil) / Assets
Gained / Assets
Lost / Total
Accounts
@ Yearend / #Institutional
Accounts
Gained / #Institutional
Accounts
Lost / # of
Employees
@Yearend
2012
2011
2010
2009
2008
2007
Account turnover – please include an explanation for any unusual circumstances associated with the above accounts. ______
______
Fee Schedule – please provide for each of your products/styles that are geared toward institutional investors.
Products / Styles / $(mm) / Fee %D: Personnel
Total # of Employees:
Total # Equity Fixed
Portfolio Managers:
Portfolio Administration:
Analysts/Researchers:
Traders:
Client Service/Marketing:
Risk Management:
Compliance Officer:
Systems / Information Technology:
Other:
Product Portfolio Manager or Team Members Dates (from-to)
______
______
Please provide biographies for all key investment professionals listed above.
Portfolio Manager and Analyst – please provide the following for each (refer to Biographies):
- Years of portfolio management experience (PM only):
- Years of research experience:
- Sector/industry covered:
- Years of coverage experience for each specific sector/industry.
How long has the investment staff worked together as a team? (Please provide detail)
______
Investment personnel turnover in the last five years? Please provide job functions (e.g. “1 Analyst”).
Job
Additions Terminations Resignations Function
2012
2011
2010
2009
2008
Total
Terminations – please include an explanation for any listed above. ______
______
Disciplinary action – has any such action been taken by the firm with respect to any employee who is in a position of fiduciary responsibility or senior management (Yes/No)? If “Yes”, please explain. ______
Compensation system – please describe for key investment management professionals, including research analysts. ______
______
Alignment of interests – to what extent does the principals and employees have their own assets invested in firm products, alongside clients? ______
______
Code of Ethics – Does your firm have a Code of Ethics for Employees to ensure clients’ interests are protected (Yes/No)? If so, please attach.
E: Decision Making Process and Investment Style
Investment Policy – please provide a description of such for each product or distinct investment style offered by your firm.
Investment Strategy – please provide a brief description of such for each service or distinct investment style offered by your firm.
Source for generating new investment ideas?
Internal %
External %
Sources of research?
Internal %
Street %
Other (list) ______%
Research process – please discuss: ______
______
Portfolio construction and decision-making process – please provide a description of said process for each service or distinct investment style offered by your firm (separately).
______
Please identify the individuals responsible for the investment decision-making process for each product. ______
Biases – describe if your portfolio has any biases with regard to specific sectors, industries or market capitalization?______Are there sectors in which your firm does not typically invest? ______
Risk Management – please discuss
______
Timing – what role, if any, does it play in your process?______
Sell Discipline (profit taking and risk control) – please provide a description of said discipline employed for each distinct style. ______
What is the expected annual portfolio turnover? ______
Documentation of investment decisions – how does your firm maintain such documentation, including a price target and investment target? ______
______
Attribution analysis – please provide a detailed description of the use of said analysis in reviewing investment performance and investment decisions and, when necessary, making process improvements. ______
______
Time allocation?
a. Screening and identifying new ideas: %
b. Quantitative analysis:
c. Fundamental research:
d. Portfolio construction:
Investment Process:
Please list to what extent each style adds value to the overall management of the portfolio:
Credit Quality (%):Duration Management (%):
Industry/Sector Allocation (%):
Security Selection (%):
Yield Curve Management (%):
Other (%):
Total (%): / 100%
Distinct style approach – what distinguishes your firm’s style approach from other firms investing in each of the particular segments of the market? ______
______
Portfolio decision making:
How are decisions made to add a security to the portfolio?______
Does any one person dominate the decision-making process?______
Performance excels in what types of markets? ______
Performance lags in what types of markets? ______
09/30/12 / 12/31/11 / 12/31/10 / 12/31/09 / 12/31/08 / 12/31/07Portfolio Characteristics:
Yield to Maturity
Average Quality
Effective Duration
Average Coupon
Portfolio Quality:
% in AAA bonds
% in AA bonds
% in A bonds
% in BBB bonds
% below Investment Grade
09/30/12 / 12/31/11 / 12/31/10 / 12/31/09 / 12/31/08 / 12/31/07
Portfolio Sector Exposure (%):
U.S. Treasuries
U.S. Agencies
MBS
ABS
U.S. Investment Grade
Corporates
U.S. High Yield
CMBS
Municipals
Cash
Emerging Market Debt
Non-Dollar Sovereign
Non-Dollar Corporates:
F. Performance
Please provide the following general characteristics for each product or distinct investment style offered.
Fixed Income Product:
Current Portfolio Manager
Start Date:
Benchmark Index:
Assets in This Style:
Duration:
Moody’s Quality Rating:
Yield to Maturity:
Max. Cash Position (%):
Number of Positions:
Max. Weighting per Positions (%):
Annual Turnover:
Percentage of Assets in Composite
Portfolio:
Performance Composite:
GIPS Compliant:Has the Composite been Certified?
Name of Certification Firm:
What is the strategy’s target return (in terms of bps above the appropriate Russell Style Benchmark)? ______
What is the strategy’s target risk level (in terms of tracking error vs. the appropriate Russell Style Benchmark)?______
What is the dispersion of returns for each composite? Number of accounts performing better ______/ worse______than the composite performance?
Do you consider this dispersion:
None Low Moderate High
Please provide an explanation if spread is moderate to high.
______
Monthly and quarterly performance information – please provide (gross of fees) for the most recent five years for each investment style. If available, please provide in MS Excel format.
Performance numbers are from:
Composite Selected Accounts Simulation/Model Other
If other, please explain:
______
Performance information is reported
Gross of fees Net
Which peer universe do you use to benchmark your performance? ______
Are these numbers prepared in accordance with CFA Institute Standards? Yes No
If not, at what level, if any, does the firm comply? ______
Have the numbers for the most recent year-end been formally audited? Yes No If so, by whom? ______
Please list any other products/strategies not included above and the assets under management in each (please include mutual funds, subadvisory relationships, hedge funds, etc.). ______
______
To what data base(s) do you supply performance information?
Nelson’s Mobius Other______
G: Insurance and Compliance
Insurance – list names of carriers and the dollar amount of coverage and deductible.
Errors & Omissions: ______$ ______
Fiduciary Liability: ______$ ______
Disaster Recovery – what procedures are in place?
______
Compliant with SEC, DOL and any other applicable regulatory agency?
Yes (please provide a copy of compliance) No
If No, please explain.
Compliance monitoring – how is it done with respect to both internal investment guidelines and client guidelines? ______
Who is responsible for this function? ______
Dedicated compliance officer? If not, who is responsible, and what other duties, if any, are performed by this individual?
Current or past investigation, litigation or administrative proceedings against your firm or its officers, directors or employees in connection with services rendered by them on behalf of the firm? Yes No
If “Yes,” please describe the nature of the pending litigation or administrative proceedings. ______
H: Additional Comments and Information
How did you hear out about IWIF?
Has your firm previously met with the IWIF Investment Dept.? Yes No
If so, when and where? ______
Please include: Brochure and marketing material
Sample Portfolio (Ticker/# shares)
Current Form ADV (Parts I & II) and the date it was last updated.
References: Please provide the name (and contact information) of at least two client and former client references.
Please provide any additional comments that may be helpful in understanding your firm.
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